Concept of Gift Under Hindu Law

A gift under Hindu law is seen as the owner’s relinquishing of their property rights in favour of the donee. A man has two legal options for transferring his property: either legally during his lifetime or by will after his passing. A disposition inter-vivos (a gift made while the donor is still alive) is the first; a testamentary disposition is the second.

Meaning of Gift under Hindu law

• A gift under Hindu law is defined as “the establishment of another person’s proprietary right following the extinction of one’s own proprietary right in the subject matter of gift”.
• Shastric Hindu Law does not need written gifts, but such gifts are ineffective unless they are accompanied by the giver giving the donee ownership of the object of the gift.
• The Mitakshara states that a gift consists of the renunciation of one’s own right of property without consideration and the establishment of another’s right. When another guy accepts the gift, a right is created for him; otherwise, nothing happens.
• The Transfer of Property Act of 1882’s definition of “gift” under Section 122 is as follows:

A gift is the voluntary and uncompensated transfer of specific existing movable or immovable property from one person, known as the donor, to another, known as the donee, and accepted by or on behalf of the donee.

• When acceptance is due: Such acceptance must be made while the donor is still alive and capable of contributing. The gift is invalid if the donee passes away before accepting it.

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Essentials of Gift under Hindu law

The sole prerequisite for a gift under Hindu law is that any existing moveable or immovable property must be transferred from one person to another. 

Furthermore, for a gift under Hindu law, the transfer must be voluntary and free of consideration. Following are the essentials of gifts under Hindu Law. 

1. Absence of consideration

• Gifts under Hindu law do not include the provision of money or other forms of remuneration. In the case of a gift, the idea of payment or compensation in any form is absent. Gifts under Hindu law must be given willingly. It should not be the target of any improper influence.
• In the case of a gift under Hindu law, it ought to be voluntarily done. It should not be the target of any improper influence.

2. Donor

• Any individual who makes a gift under Hindu law is considered a “donor”. He need not be the owner of the property in order to be able to transfer the gift item; nonetheless, he must be of legal age. 
• A person who has the legal authority to transfer property in whole or in part, unconditionally or subject to restrictions, qualifies as a donor.
• According to Hindu Law, the Hindu family’s Karta has the authority to give away its property in specific situations. The Karta—the donor is competent to transfer if certain requirements are met.
• With the previous approval of the other coparceners, a coparcener may give his undivided interest in the coparcenary property to another coparcener or a third party. 
• Such a gift under Hindu law is legitimate and allowed. The coparcener should be understood to have given his brother something in exchange for giving up his undivided stake in the coparcener to his brother and his sons, who were the other coparceners.
  

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3. Donee

• The recipient of the gift under Hindu law is known as the donee. A minor may receive a gift under Hindu law; nevertheless, if the duty is onerous, it cannot be enforced against him while he is still a minor. 
• He must choose to accept the responsibility or give back the gift under Hindu law once he reaches the majority. The donee must be a person who can be located.

4. The subject matter of gift under Hindu Law

The following types of property may be the subject matter of gift under Hindu law: 

• A Hindu may give away his separate or self-acquired property, subject to the maintenance claims of those he is required by law to maintain.
• A female may donate or leave her stridhana in her will.
• In some circumstances, a widow may gift away a small amount of the assets she received as her husband’s heir.
• A parent has the right to give away all of his belongings, whether they are inherited or his own. However, the father’s contribution is subject to the claims of those to whom he is legally entitled. A parent is allowed to dispose of all of his property, whether it be inherited or self-acquired, even under Dayabhaga Law, subject to the rights of those who are entitled to his maintenance.
• A coparcener may gift away his coparcenary interest as long as those who are entitled to his maintenance make their claims first.
• Unless there is a specific tradition banning alienation or the tenure is of a character that it cannot be alienated, the owner of an impartible estate may dispose of the estate by gift or bequest.

5. Gift under Hindu law of undivided interest

The Mitakshara Law, which is in force in every State, prohibits co-owners from gifting their whole stake in the co-owned property. 

There is no estoppel or other personal obstacle that prevents the donor from exercising his right to reclaim the donated property because the transaction is completely invalid. He may, however, give away his stake with the other coparceners’ approval.

6. Delivery of possession

A disposition in presenti is a gift under Hindu law. When properly executed, registered, and usually delivered into possession, it becomes effective. Giving involves giving up one’s own right (in property) without receiving anything in return while also creating the right of another. 

This process is only finished when the recipient accepts the gift; it cannot be done otherwise. One must get the gift deed registered after legal consultation to get delivery of possession legally.

7. Acceptance of gifts under Hindu law

A gift under Hindu law must be accepted in order to be considered legal. However, it is important to note that the Transfer of Property Act does not provide a specific method of acceptance. The circumstances surrounding the purchase may be important in settling the issue. There are a number of ways to demonstrate gift acceptance.

The paper may be delivered to the donee, which, depending on the circumstances, may also constitute a legitimate acceptance. There is also a presumption of acceptance due to the fact that the donee has been handed possession.

Conclusion

The blog discusses the essentials of gifts under Hindu law. It is important to get the gift deed registered to make it enforceable in the Court of Law. Taking legal consultation to get the gift registered not only saves you time but also helps you to complete your work quickly.